Editorial: Marlboro's plight should give others pause

A new school year always bring changes, but few districts have had to cope with the kind of financial turbulence occurring in the Marlboro district.

It's not the district's fault. The Marlboro Central School District is dealing with the economic fallout from seeing a major taxpayer, the power company Dynegy Inc., going through bankruptcy proceedings and selling two power plants in the Town of Newburgh.

It's a cautionary example of what happens when any particular region winds up relying too heavily on one major taxpayer or one type of business, and what happens when things go sour. It's also a solid case in point why economic diversity is typically best for a region. And why pressure must be brought to bear to ensure giant companies that can have such devastating impacts on a community operate as transparently as possible.

The Marlboro district has made substantial budget cuts. Two elementary schools have been closed. Class sizes have been increased. Extracurricular clubs and modified sports have been eliminated. And art and music programs have been reduced.

The district had little choice. The Danskammer power plant was once assessed at $75 million; now that figure is $15 million. The new owner of the Roseton power plant also is seeking a significant assessment reduction. This means the plants will be paying less in taxes, residents and other businesses more.

This year, the state helped the situation, slightly, with Assemblyman Frank Skartados, D-Milton, and Sen. Bill Larkin, R-Cornwall, securing some additional funds beyond the basic foundation aid from the state to help the district. But this money isn't a long-term solution.

The Marlboro school district has to recalibrate the best it can over time and hope the economic picture improves. But its plight is why elected officials must continue to push giant companies like Dynegy and IBM to provide ample information about their operations, so communities can better plan for possible upheavals.

Dutchess County residents have been stung by several rounds of layoffs at local IBM facilities in the past few years, and this trend is likely to continue.

IBM once employed more than 30,000 people at plants in the Town of Poughkeepsie, East Fishkill and Kingston before the company shuttered the facility in Ulster County in the 1990s. IBM has taken to refusing to divulge the number of employees at particular locations, but it is believed that number is down to perhaps 7,000 workers in Dutchess County. IBM, though, still has been given generous tax breaks by New York over the years and, at the very least, the state should be demanding more disclosure from the company.

What's more, the area must continue to brace for the day when IBM's presence will be less. Job training and other transition programs are important; so are understanding the need to strengthen small businesses in the area, to lure entrepreneurs here and build on the growing and successful tourism industry.

The Marlboro situation is an extreme example, but the hazards of banking on one particular business or industry to be the economic engine for an area are obvious. A new economy has emerged. It's a much more complicated one, and it demands new ways of thinking.

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Editorial: Marlboro's plight should give others pause

A new school year always bring changes, but few districts have had to cope with the kind of financial turbulence occurring in the Marlboro district.

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